Consumer price inflation, the key measure of price growth, came
in at just 0.2% year-on-year in August, a disappointing reading
against forecasts, which had predicted growth of 0.3% in the
month. July's final inflation reading also sat at 0.2%.

On a year-to-year basis core consumer prices grew by 0.8%,
against a forecast of 0.9%, and a previous reading of the same
number, also disappointing against forecasts.

Core prices are an important measure because they strip out the
most volatile items — things like fuel and food prices, which are
subject to massive variations.

"Looking at the main components of euro area inflation, food,
alcohol & tobacco is expected to have the highest annual rate
in August (1.3%, compared with 1.4% in July), followed by
services (1.1%, compared with 1.2% in July), non-energy
industrial goods (0.3%, compared with 0.4% in July) and energy
(-5.7%, compared with -6.7% in July)," Eurostat said in a
release.

Here is the chart:

Eurostat

The weaker than expected eurozone-wide figures follow on from
poor numbers from individual eurozone economies. On Tuesday,
German consumer price inflation came in at just 0.3%, down from
0.4% in July, and against a 0.5% forecast from economists.

The inflation release comes just over a week before the European
Central Bank's September monetary policy meeting, in which it is
expected to signal the potential for further easing of some sort
by the end of 2016. That easing could come in the form of another
interest rate cut, or the extension of the bank's already
widespread programme of quantitative easing.

Claus Vistesen, the Chief Eurozone Economist at Pantheon
Macroeconomics believes that Wednesday's numbers present: "A
dovish headline which should be enough to push the ECB to extend
QE by six months next week."

The measures currently being implemented by the ECB are designed
to try and boost stalling inflation, as well as growth, within
the eurozone.

So far the ECB's negative interest rate policy (NIRP) has not
managed to stimulate inflation, although Draghi has repeatedly
said that he and other senior bank officials are convinced the
measures are working. The ECB's official inflation target is
close to but less than 2%.